§5401. Findings and purpose






Inflation erodes the value of personal exemptions and deductions in the Maine individual
income tax structure and distorts fiscal equity among taxpayers. Inflation-induced
increases in individual income tax revenues result in annual collections that exceed
the amounts anticipated by legislative actions establishing rates, exemptions, deductions
and other features of the Maine individual income tax. Furthermore, the income tax
laws of this State, in combination with economic inflation, have caused inequitable
treatment of the taxpayers because the application of inflexible, statutorily prescribed
rates of tax, standard deduction and personal exemption to increasing personal incomes
has resulted in increasing the taxpayer's tax liability while the taxpayers purchasing
power has remained the same or, in some instances has decreased. It is the purpose
of this Act to correct this situation by requiring that certain components of the
individual income tax structure be adjusted in order to compensate for the impact
of inflation. [IB 1981, c. 2, §4 (NEW).]





SECTION HISTORY

IB 1981, c. 2, §4 (NEW).